Correlation Between SoFi Technologies and Bukit Jalil
Can any of the company-specific risk be diversified away by investing in both SoFi Technologies and Bukit Jalil at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SoFi Technologies and Bukit Jalil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoFi Technologies and Bukit Jalil Global, you can compare the effects of market volatilities on SoFi Technologies and Bukit Jalil and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SoFi Technologies with a short position of Bukit Jalil. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoFi Technologies and Bukit Jalil.
Diversification Opportunities for SoFi Technologies and Bukit Jalil
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between SoFi and Bukit is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding SoFi Technologies and Bukit Jalil Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukit Jalil Global and SoFi Technologies is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SoFi Technologies are associated (or correlated) with Bukit Jalil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukit Jalil Global has no effect on the direction of SoFi Technologies i.e., SoFi Technologies and Bukit Jalil go up and down completely randomly.
Pair Corralation between SoFi Technologies and Bukit Jalil
Given the investment horizon of 90 days SoFi Technologies is expected to generate 17.11 times less return on investment than Bukit Jalil. But when comparing it to its historical volatility, SoFi Technologies is 10.12 times less risky than Bukit Jalil. It trades about 0.07 of its potential returns per unit of risk. Bukit Jalil Global is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5.53 in Bukit Jalil Global on October 7, 2024 and sell it today you would lose (2.70) from holding Bukit Jalil Global or give up 48.82% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 27.02% |
Values | Daily Returns |
SoFi Technologies vs. Bukit Jalil Global
Performance |
Timeline |
SoFi Technologies |
Bukit Jalil Global |
SoFi Technologies and Bukit Jalil Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SoFi Technologies and Bukit Jalil
The main advantage of trading using opposite SoFi Technologies and Bukit Jalil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoFi Technologies position performs unexpectedly, Bukit Jalil can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bukit Jalil will offset losses from the drop in Bukit Jalil's long position.SoFi Technologies vs. Upstart Holdings | SoFi Technologies vs. Affirm Holdings | SoFi Technologies vs. Lucid Group | SoFi Technologies vs. Palantir Technologies Class |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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